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Salary Sacrifice

Employers and employees could be hit by new government rules on what it calls ‘optional remuneration arrangements’. People swapping salary for benefits like company cars, workplace parking and health checks will, in most cases, be required to pay the same tax as individuals who buy them out of their post-tax income. Certain benefits, such as pension saving and employer-supported childcare, are exempt from the changes, and transitional rules apply for others, but the changes aim to tackle differences between the tax treatment of cash earnings and benefits, and could result in higher tax bills and National Insurance contributions.

Affected individuals may need to weigh up whether they can negotiate better terms themselves for some benefits.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

The Partner Practice represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services, more details of which are set out on the Group's website www.sjp.co.uk/products. The 'St. James's Place Partnership' and the titles 'Partner' and 'Partner Practice' are marketing terms used to describe St. James's Place representatives.